From ACT Wiki
Revision as of 10:58, 3 February 2018 by Doug Williamson (Expand to note use of overdrafts for medium-term financing.)
A line of credit which is applied to a current account and may be drawn on demand.
It is also known as a demand loan, as it is repayable to the bank on demand by the bank.
For this reason, it is risky to use overdrafts for core financing needs.